HOUSTON, May 10, 2024 /PRNewswire/ -- Stellus Private Credit BDC ("Stellus PBDC" or the "Company") today announced financial results for its first fiscal quarter ended March 31, 2024. Robert T. Ladd, Chief Executive Officer of Stellus PBDC, stated "We are pleased to report strong results in the first quarter in which we generated $0.49 per share of net investment income and increased net asset value. During the quarter, we funded $17 million of investments and received $9 million of repayments, bringing the total portfolio to $216 million at fair value. Following the end of the quarter, on April 3, 2024, we declared our 2024 second quarter monthly dividend of $0.50 per share in the aggregate which represents an annualized dividend yield of approximately 13%." FINANCIAL HIGHLIGHTS ($ in millions, except data relating to per share amounts and sharesoutstanding) Three Months Ended March 31, 2024 March 31, 2023 Amount Per Share Amount Per Share Net investment income $3.55 $0.49 $2.64 $0.48 Net unrealized gain (loss) included in earnings 0.33 0.04 (0.06) (0.01) Benefit for taxes on net unrealized depreciation on investments 0.05 0.01 — — Net increase in net assets resulting from operations $3.93 $0.54 $2.58 $0.47 Distributions (3.61) (0.50) (2.31) (0.42) Other weighted average share adjustments(1) — 0.01 — (0.01) Net asset value 112.2 $15.26 108.0 $14.68 Weighted average shares outstanding 7,227,206 5,501,765 __________________________ (1) Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of the period end.    PORTFOLIO ACTIVITY ($ in millions) As of As of March 31, 2024 December 31, 2023 Investments at fair value $216.3 $208.6 Total assets $219.0 $211.2 Net assets $112.2 $108.0 Shares outstanding 7,358,038 7,102,136 Net asset value per share $15.26 $15.21 Three Months Ended March 31, 2024 March 31, 2023 New investments $16.6 $17.1 Repayments of investments (9.4) (9.9) Net activity $7.2 $7.2 As of As of March 31, 2024 December 31, 2023 Number of portfolio company investments 41 39 Number of debt investments 39 37 Weight average yield of debt and other income producing investments (2) Cash 11.7 % 11.8 % Payment-in-kind ("PIK") 0.3 % 0.3 % Fee amortization 0.4 % 0.4 % Total 12.4 % 12.5 % Weighted average yield on total investments (3) Cash 11.1 % 11.2 % Payment-in-kind ("PIK") 0.4 % 0.3 % Fee amortization 0.4 % 0.4 % Total 11.9 % 11.9 % _____________________________ (2) The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors of our common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expense or any sales load that may be paid by investors. (3) The dollar weighted average yield on total investments takes the same yields as calculated in the footnote above, but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing loans and equity. Results of Operations Investment income for the three months ended March 31, 2024 and 2023 totaled $6.4 million and $4.9 million, respectively, most of which was interest income from portfolio investments. Gross operating expenses for the three months ended March 31, 2024 and 2023 totaled $4.1 million and $3.3 million, respectively. For the same periods, base management fees totaled $0.8 million and $0.6 million, income incentive fees totaled $0.6 million and $0.5 million, capital gains incentive fees of less than $0.1 million and $0.0 million, which are not currently payable, fees and expenses related to our borrowings totaled $2.1 million and $1.7 million, respectively (including interest and amortization of deferred financing costs), administrative expenses totaled $0.1 million and $0.1 million, other expenses totaled $0.4 million and $0.4 million. For the three months ended March 31, 2024 and 2023, the Company's investment advisor, Stellus Private BDC Advisor, LLC (the "Advisor"), waived $0.8 million and $0.6 million of management fees (voluntarily waived until October 1, 2024), $0.2 million and $0.2 million of income incentive fees (waived as our shares were not listed on a national exchange), and $0.2 million and $0.2 million of expenses pursuant to expense support and conditional reimbursements from the Advisor for net operating expenses of $2.9 million and $2.3 million, respectively. For the three months ended March 31, 2024 and 2023, net investment income was $3.6 million and $2.6 million, or $0.49 and $0.48 per common share based on weighted average common shares outstanding of 7,227,206 and 5,501,765, respectively. The Company's investment portfolio had a net change in unrealized appreciation (depreciation) of $0.3 million and ($0.1) million for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024 and 2023, net increase in net assets resulting from operations totaled $3.9 million and $2.6 million, or $0.54 and $0.47 per common share, based on weighted average common shares outstanding of 7,227,206 and 5,501,765, respectively. Liquidity and Capital Resources On September 30, 2022, the Company entered into a senior secured revolving credit agreement with Zions Bancorporation, N.A., dba Amegy Bank and various other lenders (the "Credit Facility"). The Credit Facility, as amended, provides for borrowings up to a maximum of $150.0 million on a committed basis with an accordion feature that allows the Company to increase the aggregate commitments up to $200.0 million, subject to new or existing lenders agreeing to participate in the increase and other customary conditions. As of March 31, 2024 and December 31, 2023, the Company had $105.3 million and $98.0 million in outstanding borrowings under the Credit Facility. Recent Portfolio Activity The Company invested in the following portfolio companies for the three months ended March 31, 2024: Activity Type Date Company Name Company Description Investment Amount  Instrument Type Add-On Investment January 9, 2024 Morgan Electrical Group Intermediate Holdings, Inc.* Provider of commercial electrical services $ 12,854 Senior Secured – First Lien Add-On Investment January 12, 2024 Impact Home Services LLC* Residential garage door, electrical, and plumbingservices provider $ 28,813 Equity Add-On Investment                January 31, 2024 Impact Home Services LLC* Residential garage door, electrical, and plumbingservices provider $ 12,637 Equity Add-On Investment                March 1, 2024 Monitorus Holding, LLC* Provider of media monitoring and evaluation services $ 38,984 Unsecured Convertible Bond New Investment March 11, 2024 Exec Connect Intermediate LLC Facilitator of executive-level in-person events andremote peer-to-peer industry insights $ 1,746,286 Senior Secured – First Lien $ 254,005 Delayed Draw Term Loan Commitment $ 158,753 Revolver Commitment $ 77,109 Equity New Investment March 11, 2024 Titan Meter Bidco Corp. Provider of liquid metering products and integrated solutions to the energy infrastructure sector $ 7,696,671 Senior Secured – First Lien $ 810,176 Revolver Commitment $ 395,667 Equity New Investment March 26, 2024 Med Learning Group, LLC Provider of continuing medical education services $ 3,636,170 Senior Secured – First Lien $ 990,355 Delayed Draw Term Loan Commitment ____________________________ *      Existing portfolio company The Company realized investments in the following portfolio companies for the three months ended March 31, 2024: Activity Type Date Company Name Company Description Proceeds Received  Instrument Type Full Repayment January 8, 2024 Peltram Plumbing Holdings, LLC* Provider of plumbing solutions. $ 6,818,700 Senior Secured – First Lien ____________________________ *      Existing portfolio company Events Subsequent to March ...